Corporate Finance
3rd Edition
ISBN: 9780132992473
Author: Jonathan Berk, Peter DeMarzo
Publisher: Prentice Hall
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Textbook Question
Chapter 4, Problem 3P
Calculate the
- a. Five years at an interest rate of 5% per year.
- b. Ten years at an interest rate of 5% per year.
- c. Five years at an interest rate of 10% per year.
- d. Why is the amount of interest earned in part (a) less than half the amount of interest earned in part (b)?
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Students have asked these similar questions
Calculate the future value of $2,000 in
a. 3 years at an interest rate of 10% per year.
b. 6 years at an interest rate of 10% per year.
c. 3 years at an interest rate of 20% per year.
d. Why is the amount of interest earned in part (a) less than half the amount of interest earned in part (b)?
Calculate the future value of $5,000 in
a. 4 years at an interest rate of 9% per year.
b. 8 years at an interest rate of 9% per year.
c. 4 years at an interest rate of 18% per year.
d. Why is the amount of interest earned in part a less than half the amount of interest earned in part b?
a. 4 years at an interest rate of 9% per year.
The future value of $5,000 in 4 years at an interest rate of 9% per year is $ 7,057.91. (Round to the nearest dollar.)
b. 8 years at an interest rate of 9% per year.
The future value of $5,000 in 8 years at an interest rate of 9% per year is $ 9,963. (Round to the nearest dollar.)
c. 4 years at an interest rate of 18% per year.
The future value of $5,000 in 4 years at an interest rate of 18% per year is $ 12,932.92. (Round to the nearest dollar.)
Calculate the future value of $4,000 in
a. Four years at an interest rate of 5% per year.
b. Eight years at an interest rate of 5% per year.
c. Four years at an interest rate of 10% per year.
d. Why is the amount of interest earned in part (a) less than half the amount of interest earned in part (b)?
a. Four years at an interest rate of 5% per year.
The future value of $4,000 in 4 years at an interest rate of 5% per year is $
(Round to the nearest dollar.)
b. Eight years at an interest rate of 5% per year.
The future value of $4,000 in 8 years at an interest rate of 5% per year is $
(Round to the nearest dollar.)
c. Four years at an interest rate of 10% per year.
The future value of $4,000 in 4 years at an interest rate of 10% per year is $
(Round to the nearest dollar.)
Chapter 4 Solutions
Corporate Finance
Ch. 4.1 - Prob. 1CCCh. 4.1 - Prob. 2CCCh. 4.2 - Prob. 1CCCh. 4.2 - Prob. 2CCCh. 4.2 - Prob. 3CCCh. 4.3 - Prob. 1CCCh. 4.3 - Prob. 2CCCh. 4.4 - Prob. 1CCCh. 4.4 - What benefit does a firm receive when it accepts a...Ch. 4.5 - How do you calculate the present value of a a....
Ch. 4.5 - How are the formulas for the present value of a...Ch. 4.6 - Prob. 1CCCh. 4.6 - Prob. 2CCCh. 4.7 - Prob. 1CCCh. 4.7 - Prob. 2CCCh. 4.8 - Prob. 1CCCh. 4.8 - Prob. 2CCCh. 4.9 - Prob. 1CCCh. 4.9 - Prob. 2CCCh. 4.A - Your grandmother bought an annuity from Rock Solid...Ch. 4.A - Prob. A.2PCh. 4 - You have just taken out a five-year loan from a...Ch. 4 - Prob. 2PCh. 4 - Calculate the future value of 2000 in a. Five...Ch. 4 - Prob. 4PCh. 4 - Your brother has offered to give you either 5000...Ch. 4 - Prob. 6PCh. 4 - Prob. 7PCh. 4 - Your daughters currently eight years old. You...Ch. 4 - Prob. 9PCh. 4 - Prob. 10PCh. 4 - Suppose you receive 100 at the end of each year...Ch. 4 - You have just received a windfall from an...Ch. 4 - Prob. 13PCh. 4 - You have been offered a unique investment...Ch. 4 - Prob. 15PCh. 4 - Prob. 16PCh. 4 - How would your answer to Problem 16 change if the...Ch. 4 - The British government has a consol bond...Ch. 4 - What is the present value of 1000 paid at the end...Ch. 4 - You are head of the Schwartz Family Endowment for...Ch. 4 - When you purchased your house, you took out a...Ch. 4 - Prob. 22PCh. 4 - Your grandmother has been putting 1000 into a...Ch. 4 - A rich relative has bequeathed you a growing...Ch. 4 - Prob. 25PCh. 4 - You work for a pharmaceutical company that has...Ch. 4 - Your oldest daughter is about to start...Ch. 4 - A rich aunt has promised you 5000 one year from...Ch. 4 - You are running a hot Internet company. Analysts...Ch. 4 - Prob. 31PCh. 4 - Prob. 32PCh. 4 - Prob. 33PCh. 4 - Prob. 34PCh. 4 - Prob. 35PCh. 4 - Prob. 36PCh. 4 - Prob. 37PCh. 4 - Prob. 38PCh. 4 - Prob. 39PCh. 4 - Prob. 40PCh. 4 - Prob. 41PCh. 4 - Prob. 42PCh. 4 - Prob. 43PCh. 4 - Prob. 44PCh. 4 - Prob. 45PCh. 4 - Prob. 46PCh. 4 - Prob. 47PCh. 4 - Prob. 48PCh. 4 - Prob. 49PCh. 4 - Prob. 50PCh. 4 - Prob. 51P
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